The number of permanent jobs on offer has dramatically dropped

by business editor Trevor Sturgess

Permanent job placements have plummeted in the past few weeks, according to staffing agencies.

Hopes that recent monthly falls in unemployment would continue appear to have been dashed by this first drop in eight months and the fastest rate of decline for three years.

Some economists have claimed the jobless dip is at odds with negative growth figures and the official data might be unduly pessimistic.

But latest figures from recruitment firms across Kent, Surrey and Sussex suggest the jobs situation is not as rosy as the numbers suggest.

Figures from Markit for business consultants KPMG and the Recruitment and Employment Confederation (REC) reveal the region has performed below the national average and on a par with the pace of decline in the north.

However, billings for temporary staff rose slightly amid a shortage of temps available for work.

REC chief executive Kevin Green warned that while south east firms were still hiring, fragile confidence was slowing down the process and this could get worse as thousands of school and university leavers joined the jobs market over the next few weeks. There were also signs of a skills shortage, he said..

Mr Green added: "The UK’s labour market deserves a gold medal for its incredible performance in the face of adversity so far this year.

"In the last few months, it has defied gravity as unemployment has fallen and jobs grew even while the economy slipped back into recession. But this run might be coming to an end as this month’s data shows an abrupt fall in permanent appointments in the south."

Paul Gresham, senior partner for KPMG in the south east said: "Only a few weeks ago there was an audible sigh of relief across the UK’s workforce as official employment figures indicated signs of improvement.

"However, my concern is that any sigh of relief may be mistaken for a groan of exasperation as the number of permanent staff taken on in the region fell this month, which could suggest there is still a high degree of uncertainty."